Employee tax credits are not understood by most business owners
About 80% of business owners are unaware of how to leverage the use of employee tax credits, including R&D credits as well as worker opportunity credits. As a results, business owners are potentially leaving tens of thousands of dollars on the table and in the hands of the IRS and state tax departments.
Research & Development and Worker Opportunity tax credits can benefit all businesses, and can be retroactive three years if never claimed. These credits result in reducing a company’s tax liability at the end of the year; but can also result in the IRS cutting a check to the business for previous years’ claims. It’s hard to see why any company would not want to know more about these credits.
Credits can range as high as $9,600 per-employee, so a company hiring 100 people per-year could potentially realize a maximum credit of nearly $1-million annually. The credits can be claimed for up to two years. Imagine how that can offset hiring, training and attrition costs!
Most HR departments don’t have the capacity to submit, follow up, and manage ongoing tax credits, since the government (as usual) creates a bit of a hassle in the process. As a result, our firm works with STRYDE and Growth Management Group to provide an automated system that takes all the work out of the process. Our automated system submits the paperwork, follows through with approval, and maintains ongoing status/approvals. Additionally, the system automatically generates IRS Form 5884 so tax accountants can easily submit the employee tax credit claims to the IRS.
Every company can qualify for these credits, since it’s based up employees and not classification of the business.